According to the Sebi order, Gensol took a loan of Rs 71.41 crore from IREDA and added another Rs 26 crore from its own account, making a total of about Rs 97 crore. A few days later, these funds were sent to Go-Auto, a car dealer linked to the company. On the same day, Go-Auto transferred Rs 50 crore to Capbridge Ventures, a firm run by Gensol’s own promoters.
Capbridge Ventures then paid about Rs 42.94 crore to DLF. “The payment was made towards consideration for the purchase of an apartment in the project The Camellias,” Sebi said.
Sebi noted that the funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, DLF Gurgaon, in the name of a firm where the MD of Gensol and his brother are designated partners.
In this series of transactions, Rs 5 crore was initially paid as booking advance by Jasminder Kaur, mother of Anmol Singh Jaggi. This was also sourced from Gensol.
Once DLF returned the advance to Jasminder Kaur, the funds did not go back to the company but were instead credited to another related party of Gensol (Matrix Gas and Renewables).DLF, in a communication to Sebi, confirmed that the payment was made on October 6, 2022, as part of the consideration for an apartment originally booked by Jasminder Kaur.There were also other instances of fund diversion apart from the real estate buying. Following the investigation, Sebi has issued an interim order against Gensol Engineering and its promoters — Anmol Singh Jaggi and Puneet Singh Jaggi, barring these entities from the capital markets.
In a strongly worded order Sebi said, there is complete breakdown of internal controls and corporate governance norms in Gensol as a listed company. “The promoters were running a listed public company as if it were a proprietary firm.”
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